Stem cell research is an exciting area of biomedical research, with potential to advance cell biology, and other new modalities of treatment for many untreatable diseases. The potential resides in the ability of these cells to develop into many different cell types in the body. In India, efforts are being made on several fronts to promote this area in an integrated way. The main features of the strategy are: explore the full potential of adult and embryonic stem cells (ESCs) through basic and translational research; generate patient specific human ESC lines; enhance creation of animal models for pre-clinical studies; virtual network of Centres; creation institutions; generation of well trained manpower; build partnership with large companies in path-breaking areas; promote closer interactions amongst basic scientists, clinical researchers and the industry. Newer initiatives include: establishment of a dedicated institute for stem cell science and regenerative medicine with its translational units; GMP and clean room facilities in medical schools; creation of a system for multi-centric clinical studies using autologous adult stem cells; national and international training courses for providing training to the students and the young scientists in the both embryonic and adult stem cells; and formulation of guidelines to conduct stem cell research in a responsible and ethically sensitive manner in the country. The core capacity must be nurtured and built to create the required critical mass to have impact.